Chicago Tribune: State wants vendor incentives

[Tweed]

http://www.chicagotribune.com/news/local/chi-0502270308feb27,1,282545.story?coll=chi-news-hed

"Governments are supposed to buy supplies and services by soliciting bids for the best value, but the administration of Gov. Rod Blagojevich is trying a new wrinkle by asking prospective vendors also to kick in some upfront cash to help the struggling state treasury.

Details of the unorthodox approach are buried in a recent solicitation for bidders for a new three-year, multimillion-dollar contract to provide the state with tape dispensers, paper clips and other office supplies. The request also asks prospective vendors to spice their bids with cash "incentives" to help reduce the state's budget deficit.

Officials of the state's purchasing agency say they are testing the concept on the office supply contract and may extend it to a wide range of other contracts. They said Connecticut, Florida and Pennsylvania have adopted similar tactics, but procurement officials in those states deny it.

Critics contend the request for upfront payments represents a fundamental change in the way the state contracts with vendors, a process historically guided by the principle that government should seek goods and services at the lowest possible price to taxpayers."

Okay, now this seems just wrong.